Samsung Electronics Announces Q4 2019 Earnings
22.6 Trillion Won Investment in EUV 7nm Process Transition
A total of 26.9 trillion won in facility investment was executed in 2019.


On the 30th, Samsung Electronics announced its fourth-quarter 2019 results, reporting consolidated revenue of 59.88 trillion won and an operating profit of 7.16 trillion won.

For the full year of 2019, it recorded sales of 230.4 trillion won and an operating profit of 27.77 trillion won. In 2018, sales were 243.77 trillion won and operating profit was 58.89 trillion won.

In the fourth quarter, sales increased slightly due to strong sales of premium set products compared to the same period last year, while operating profit decreased by 3.64 trillion won due to weak memory performance.

In the semiconductor business, performance in the memory sector declined compared to the same period last year due to falling DRAM prices, while profits in the system semiconductor sector increased due to increased demand for high-resolution image sensors and high-performance computing (HPC) chips.

In the display business, performance for small and medium-sized displays decreased slightly compared to the same period last year due to weak demand for some premium product lines, while performance for large displays also declined due to increased supply in the industry.

The IM business saw improved performance compared to the same period last year due to increased sales of flagship products and the reorganization of the Galaxy A series lineup.

The CE business saw increased performance driven by expanded sales of premium TV products, such as QLED and ultra-large models, strong sales of new lifestyle appliances, and improved profitability of refrigerators and washing machines.

In the fourth quarter, the exchange rate impact was negatively affected by approximately 300 billion won compared to the previous quarter due to the weakening of the US dollar, euro, and major growth market currencies against the won.

Performance is expected to decline in the first quarter of 2020 due to the impact of the seasonal off-season. Nevertheless, officials anticipate that key businesses will grow in 2020.

In the semiconductor business, the plan is to normalize memory inventory during the first half of the year, respond to market demand for System LSI with 5G chips and high-resolution sensors, and strengthen technological competitiveness in the foundry business by expanding EUV 5nm and 7nm mass production while simultaneously developing the 3nm GAA process.

The display business plans to respond to new demand, such as for foldables, in the case of small and medium-sized displays. In the case of large displays, weak performance is expected due to the ongoing oversupply and the costs incurred in transitioning the business structure to focus on QD displays.

The IM business plans to focus on selling premium products by expanding its wireless 5G product lineup and launching foldable products with new designs, while the network business plans to pursue overseas 5G business.

The CE business plans to expand sales of premium products.

In 2019, approximately 26.9 trillion won was executed in facility investment. By business sector, this amounted to 22.6 trillion won for semiconductors and 2.2 trillion won for displays.

Compared to 2018, investment in semiconductors decreased in the case of memory as it focused on process transitions in 2019, while investment in foundry increased due to the expansion of facilities to apply fine processes such as EUV 7nm.

In the case of displays, investment decreased compared to 2018 as investment in small and medium-sized A4 lines was completed. For 2020 investment, we plan to respond flexibly to fluctuations in demand.

In the case of memory, we plan to continue infrastructure investment to meet mid-to-long-term demand and adjust capital investment in accordance with market recovery trends. In addition, investments to strengthen the mid-to-long-term competitiveness of future growth businesses such as system semiconductors, displays, AI, and 5G will proceed as planned.